Kingfisher (KGF) Q3 25/26 TU earnings summary

Executive summary

• Maintains leading positions in large, structurally growing home improvement markets worth £160bn, with a diverse portfolio and strong trade/retail mix.

• Strategic growth initiatives in trade and e-commerce are driving market share gains and high-quality, volume-driven growth, with Q3 and YTD LFL sales up 0.9% and 1.6% respectively.

• Upgraded full-year adjusted profit before tax guidance to £540m–£570m, reflecting strong H1 and Q3 performance and cost discipline.

• UK & Ireland outperformed with market share gains, while France and Poland faced subdued consumer demand.

• Focused on disciplined capital allocation: investing in organic growth, maintaining a strong balance sheet, and returning surplus cash to shareholders.

Financial highlights

• H1 group sales reached £6.8bn, with like-for-like sales up 1.9% (excluding -0.6% calendar impact); Q3 group sales at £3,252m, up 1.0% reported and 0.9% LFL; YTD sales at £10,063m, up 0.9% LFL.

• Adjusted profit before tax up 10.2% year-over-year; adjusted EPS up 16.5%.

• E-commerce sales grew 10.2% with penetration at 20.7%; trade sales up 12.1% with 31.3% penetration.

• Free cash flow of £478m in H1, up 13.5% year-over-year; net leverage at 1.3x; free cash flow target maintained at £480m–£520m.

• Net cash inflow in H1 was £277m, up 128% year-over-year, aided by one-off items.

Outlook and guidance

• Upgraded full-year adjusted PBT guidance to £540m–£570m (from £480m–£540m); free cash flow guidance unchanged at £480m–£520m.

• Capex guidance increased to £370m due to property acquisition.

• Confident in medium-term targets, including 5%-7% retail operating margin in France, dependent on market recovery.

• Focus remains on growing sales and profits ahead of the market, with continued investment in strategic initiatives.

• Market conditions in UK & Ireland, France, and Poland now tracking between lower and middle scenario ranges for the year.